Seward & Kissel is pleased to release its 2022/2023 Hedge Fund Side Letter Study.
This year, for the eighth year in a row, we have conducted a Study examining side letters negotiated by our hedge fund manager clients (the “Study”). The Study covers the period from July 1, 2022 through June 30, 2023. We believe that the Study provides important data points that are relevant to the industry. Key takeaways include:
- The Study reflected a significant increase in Mature Manager representation (up to 84%), with the average regulatory assets under management (“RAUM”) of the Mature Managers measured at approximately $7 billion (as compared to $4 billion in the prior study).
- The average RAUM of Newer Managers in the Study was approximately $170 million, as compared to $210 million in the prior study.
- Funds-of-funds continued to be the most common category of side letter investor, representing 54% of all side letter investors, while the government plan and endowment categories were each a distant second at 12% each.
To download a copy of the Study, please submit the form below.